Manufacturing businesses have inventory accounts, but merchandising businesses do not.

Name: Manufacturing businesses have inventory accounts, but merchandising businesses do not.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Merchandising businesses typically buy and sell finished products, so their inventory is their primary asset and they need inventory accounts to track it. Manufacturing businesses, on the other hand, often have raw materials, work-in-progress, and finished goods inventory accounts to track the various stages of production.

Manufacturing Businesses Have Inventory Accounts, but Merchandising Businesses Do Not